Question

facts: At March 31, 2020, Rustic Company's records show the following information. Unadjusted Cash balance per...

facts:

At March 31, 2020, Rustic Company's records show the following information.

Unadjusted Cash balance per bank records: $22,912

Unadjusted Cash balance per book records: $28,530

Deposits in transit (Outstanding deposits): $17,000

Checks in transit (Outstanding checks): $11,752

Rustic Company's March 2020 bank statement contains the following information:

Safety Deposit Box Fee: $25

Bank Service Charge: $30

Interest Earned: $45

In reviewing Rustic Company's information, you discover that Rustic Company incorrectly recorded Check #1031 in its cash payments journal (a log of outgoing checks). Although Rustic Company correctly prepared check $1031 as $400, the company incorrectly recorded the $400 check as $40 in its cash payments journal.

Initial Comments

Use the information presented above to answer the following questions. Post your initial comments by 11:59 P.M. on Monday, April 20. You will not be able to view your classmates' postings until you post your initial comments.

1. What is the adjusted cash balance per book records? Show your calculation.

2. What is the adjusted cash balance per bank records? Show your calculation.

Homework Answers

Answer #1

Solution 1 & 2:

Rustic Company
Bank Reconciliation - March 31
Bank's Cash balance Company's cash balance
Particulars Amount Particulars Amount
Ending balance as per Bank Statements $22,912.00 Ending Balance as per cash books $28,530.00
Additions: Additions:
Outstanding Deposits $17,000.00 Interest earned $45.00
Deductions: Deductions:
Outstanding Checks $11,752.00 Bank Service charge $30.00
Safety deposit box fee $25.00
Incorrec recording of check 1031 $360.00
Up to date cash balance as per bank $28,160.00 Up to date cash balance as per books $28,160.00

adjusted cash balance per book records = $28,160

adjusted cash balance per bank records = $28,160

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Dorian Company’s records showed the following information for the month of March 2020: Unadjusted Cash balance...
Dorian Company’s records showed the following information for the month of March 2020: Unadjusted Cash balance per Bank Records at March 31: $7,000. Unadjusted Cash balance per Books at March 31: $5,659 (1) Outstanding Deposits (deposits in transit): $6,000 (This means the deposits have been recorded by Dorian, but have not yet been recorded by the bank.) (2) The bank statement shows check printing charges of $40. (3) Dorian Company used Check #114 to pay a wholesale supplier $248. Although...
Iverson Company’s bank statement shows a cash balance of $830 at March 31, 2020. (This is...
Iverson Company’s bank statement shows a cash balance of $830 at March 31, 2020. (This is the unadjusted cash balance per bank records.) The company’s records show a cash balance of $390 at March 31, 2020. (This is the unadjusted cash balance per books at March 31, 2020.) The Company’s records reveal the following information for the month of March 2020. 1. Outstanding Deposits: $840 (This means that the company deposited $840, but this amount has not yet been recorded...
Schaeffer Company assembled the following information to complete its March 31st cash reconciliation: Cash balance per...
Schaeffer Company assembled the following information to complete its March 31st cash reconciliation: Cash balance per bank= $12,224 Cash balance per books= $13,580 Deposits in transit= $4,000 NSF check from customer= $256 Bank service charges= $80 Outstanding checks= $2,480 Accounts receivable collected by bank for Schaeffer= $500 (a) Prepare a complete bank/cash reconciliation for March 31st . (b) Prepare the adjusting journal entries required on March 31st .
word and excel files only. 1) The unadjusted cash account balance for Carson Company at December...
word and excel files only. 1) The unadjusted cash account balance for Carson Company at December 31 is $12,615. The bank statement showed an ending balance of $18,250 at December 31. The following information is available from an examination of the bank statement and the company's accounting records: Bank service charge $ 20 Outstanding checks 7,500 NSF check from a customer 425 Deposits in transit 1,222 Check #433 for the purchase of inventory was written correctly and paid by the...
Coronado Plastics Company deposits all receipts and makes all payments by check. The following information is...
Coronado Plastics Company deposits all receipts and makes all payments by check. The following information is available from the cash records: MARCH 31 BANK RECONCILIATION Balance per bank $48,760 Add: Deposits in transit 3,864 Deduct: Outstanding checks (6,992 ) Balance per books $45,632 Month of April Results Per Bank Per Books Balance April 30 $51,520 $50,600 April deposits 22,080 25,760 April checks 20,424 18,400 April note collected (not included in April deposits) 5,520 -0- April bank service charge 62 -0-...
At March 31, Cummins Company had a balance in its cash account of $10,700. At the...
At March 31, Cummins Company had a balance in its cash account of $10,700. At the end of March, the company determined that it had outstanding checks of $1,160, deposits in transit of $720, a bank service charge of $40, and an NSF check from a customer for $220. The true cash balance at March 31 is? A) 10260 B) 10440 C)10700 D)9940 Part 2 The April 30 bank statement for Trimble Corporation shows an ending balance of $40,262. The...
a) Ladd Company gathered the following reconciling information in preparing its April bank reconciliation: Cash balance...
a) Ladd Company gathered the following reconciling information in preparing its April bank reconciliation: Cash balance per books, 4/30   $20,900 Deposits in transit 5,700 Notes receivable and interest collected by bank 9,600 Bank charge for check printing 134 Outstanding checks 15,500 NSF check   1,620 The adjusted cash balance per books on April 30 is b) At April 30, Dorale Company has the following bank information: cash balance per bank $4,500; outstanding checks $556; deposits in transit $571; credit memo for...
Question 18 Waterway Plastics Company deposits all receipts and makes all payments by check. The following...
Question 18 Waterway Plastics Company deposits all receipts and makes all payments by check. The following information is available from the cash records: MARCH 31 BANK RECONCILIATION Balance per bank $67,840 Add: Deposits in transit 5,376 Deduct: Outstanding checks (9,728 ) Balance per books $63,488 Month of April Results Per Bank Per Books Balance April 30 $71,680 $70,400 April deposits 30,720 35,840 April checks 28,416 25,600 April note collected (not included in April deposits) 7,680 -0- April bank service charge...
Exercise 7-9 Don Wyatt is unable to reconcile the bank balance at January 31. Don’s reconciliation...
Exercise 7-9 Don Wyatt is unable to reconcile the bank balance at January 31. Don’s reconciliation is as follows. Cash balance per bank $3,760.20 Add: NSF check 590.00 Less: Bank service charge 30.00 Adjusted balance per bank $4,320.20 Cash balance per books $4,075.20 Less: Deposits in transit 630.00 Add: Outstanding checks 935.00 Adjusted balance per books $4,380.20 Prepare a correct bank reconciliation. (List items that increase cash balance first. Reconcile cash balance per bank first. Round answers to 2 decimal...
The bank statement balance for Hot plate inc. as of March 31st is $5,150. Hot plates...
The bank statement balance for Hot plate inc. as of March 31st is $5,150. Hot plates records show that there is $3,300 in deposits in transit and $5,000 in outstanding checks that have not cleared. The book cash balance on March 31st is $3,750. Reviewing the bank statement shows several transactions that perhaps should be recorded. On the bank statements there were service charges of $75; an NSF check in the amount of $250; and interest earned $25. A. Calculate...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT